Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ paid for a 12-month rent that went into effect on January 1. The total amount is 24,000. At January 31, one month or $2,000
XYZ paid for a 12-month rent that went into effect on January 1. The total amount is 24,000. At January 31, one month or $2,000 of the rent has expired (been used up) calculated as $24,,000/12 months = $2,000. What is the correct journal entry on January 31 for the 2,000 for XYZ? O a. Debit Prepaid Expense, Credit Rent Expense O b. Debit Rent Expense, Credit Prepaid Expense OC. Debit Unearned Revenue, Credit Revenue Od. Debit Revenue, Credit Unearned Revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started